Myanmar rice exporters seek govt's help after Chinese trader escapes owing millions of dollars

 The trader, Luo Jianfang, who also owes more than 8 billion kyats to Chinese traders based in Ruili, Yunnan province, holds shares in a number of trading firms, one of which is closely linked to the Chinese government organ responsible for managing state-owned enterprises, reports The Irrawaddy.

Luo, who represents Zhongshang Affiliates (Zhong Shang Lian Hang), disappeared without transferring payment after receiving more than 2.6 billion kyats worth of rice from Myanmar traders, U Min Thein, the vice chairman of the Muse Rice Wholesale Center in Shan State told The Irrawaddy.

U Min Thein told the newspaper Luo had been purchasing rice from Myanmar traders for more than six months.

He said many local traders favored his company because it purchased at a higher price compared to other Chinese companies.

“Luo signed all the agreements with Myanmar traders as a representative of the company. The traders trusted Luo, as they also have strong records of [doing business with] the company,” U Min Thein said. 

The Irrawaddy has learned that Luo owns a 20 percent share in the company, the full name of which is the Yunnan Pilot Free Trade Zone China Commercial Food Trading Company Ltd. (CCFC), while another entity—the Yunnan Pilot Free Trade Zone Zhongshang Shiye (China Industries) Company Ltd.—owns a 51-percent stake.

This company in turn is controlled by China Southwest Enterprise Company Management Co. (Chongqing), which owns 70 percent of the shares, and is itself fully owned by China’s Commercial Network Construction and Development Center (CCNCC), the newspaper reported.